Home Equity Loan for Real Estate Investors
What is a Home Equity Loan and how can what are the pros and cons for a Real Estate Investor.
Home equity loans for real estate investors, why is it an important idea, understand the topic, and have it in your tool box for your Real Estate Investments in case you come across an occasion or situation where you could use that for you benefit guy.
Most of you guys know that I don’t like stinky bankers, and I like money without borrowing to a banker, because to me, financial freedom is not having responsibility to no lender or Mortgage Company where they have to tie you down, talk to them. However, it’s important to know all the different types of tools, because even though I’ve never used a home equity loans and I will probably never use one, but I can’t ever say ever, I might one day use it. That’s why I started it heavily, and that’s why I’m here to share to you what a home equity loan is. So, know that I’m not for debt, but let’s talk about what home equity is, for investors.
Home equity loan, what is home equity loan for investors? It is the ability where you’re to have, for example, let’s say let’s do you anal; if you have a business, every month you get a monthly cash flow after you pay all the expenses. So instead of getting the monthly cash flow every month, you can sell the business and get one lump sum of money, okay. That’s kind of like analogy of the home equity loan, because in one sense, in a home that you personally live in, you’re not getting the monthly cash flow, but you’re getting equity. If it’s a rental property or income producing asset property, you know, you have Airbnb, you have something like that, like a note on it, and it becomes an income producing asset. So, instead of receiving the equity, or instead of receiving the monthly cash flow, you could sell it, like what we talked about in the business situation. Another example is what they talk about, like you have a golden goose that lays eggs; you have the ability to continue getting the eggs or sell it. Now, how’s that relate to a house? A home that you live in personally or a home that you have as a rental property, is that you are able to control the asset, still own the asset, still own the goose, still own the business but get a lump sum of money in a sense of a line of credit with a banks. And you can use that money to do things like, you know, whatever you want to do with it, like invest it in other rental properties, or fix and flips or start a business, or what have you, and they’ll probably not allow you to do all that stuff, but you know, people still do it, okay.
So now, what is a home equity loan? It is your ability to borrow money against your business, in this case, the house. Or in other word, borrow money against your goose without selling it, that’s what a halo loan is. And some people say halo loan, home improvement loan. Why is it important, that you know about the halo loan; because if you have a property listed for rental property or it’s a house that you live in, but let’s assume it’s a rental property in this case, and you’re getting $500 a month positive cash flow, and today, interest is very low, you can get a home equity loan on it, assuming you have equity and start buying more stuff. And you don’t have to sell your property and find a new one, advertise and talk to motivated sellers and use my seller phone script. So you don’t have to all that sweat equity or pay whole sellers to bring you a deal. When you already have a nice property, you already know it, left and right, you probably have it for a couple of years or even your own home, if it’s your own personal home, you could get a home equity loan to do investments.
Now, what do I think about home equity loans? Okay, let’s talk about that. What do I think about home equity loans? I think that if you want to go positive in this, you know, this is like a line here, let’s assume this is the center and if you want to go from here, this is zero – positive, you can’t go negative. And many people in our society even successful people, talk about they’ve gone this way, they’re in debt 42 million, 50 million, they’ll say “hey you know, I have a jet, I have a nice properties and I have all these. But they also, if you listen to them, they talk about when 2007 crash came, how the bankers took their money, took their credit. They wanted all their money, and so they were in tough situations like that. And that’s because they think that by going left, which is negative, which is borrow money, which is like sticking yourself with steroids, you’re going to have side effects. And the side effect is you can never be free, okay. But if you go this way, of course it’s going to be a slow of growth because you have to use your imagination and creativity, instead of just going to a bank and just signing away. Okay I sign away, here you get $300,000. How hard was that dude? Sure you’ve got to work on your credit, but I think that if you have a home and you create yourself 50% or 70% equity, good job for you. If it was my mom or my dad I would say please don’t get debt on that, you’re almost hitting the finish line, just have that property debt free, don’t get another loan on it because; which brings me to my next point, there’s other alternative ways, and this is very crucial, so here me right.
There’s other alternative ways, other alternative ways to buy houses without getting a home equity loan, halo loan, okay. And that is by, listen up guys, this is very crucial; by dealing with the sellers direct. So, the institutional way, not college way, they say they get JOB. But people that want to become entrepreneurs, and they go with the herd of entrepreneurship, the other track that everybody is traveling, they tell you that – hey you need hard money lending, or you need a home improvement loan to buy properties, you need to go to the MLS, you need to go to the auction. But there’s other ways that I call alternative, creative financing, where you deal with the seller direct that’s what I use. I deal with the seller direct, and I buy their home via owner financing. And there are many different ways of structure creative owner financing; for example you have like, what’s called master leases, where you lease the property. You don’t own it, you don’t deal with the repairs, and you lease it, you sub-lease it to let’s say Airbnb, renters, short-term renters or you just lease it normally and you get to control the cash flow. Or you could do situations, where you could do owner financing where the seller gives you the deed or the title of the property, you become the rightful owner of it. So there’s so many different ways what I call alternative ways to do home equity.
So, is home equity bad? No, it’s not bad but I would only use it like a toolbox. Tool that’s at the bottom, it’s in there, if one day if opportunity comes that I need it, I will, but it’s not going to be my very first tool, it’s going to be like the one percenter. It has to be like in desperate situations where I want to let go of my equity or I want to let go of like, and get more in debt. If I’m going in debt, I want to get in debt with some other sellers, social security or some other sellers debt. I’m going to just take over their debt or if they want free and clear, I’m just going to have them carry me a note. And why would the seller sell me their home in that way? That’s a very good question, and when I started in 2007, fourth quarter, I didn’t believe it either. But the difference is, I took action to see if the stuff that they talked about on TV was real - late night shows, and some of you guys will never take the action. And when I did my first deal for my own home, my own personal home, I bought it owner financing from a seller that’s going through a divorce and they were motivated, that I become a believer. From then on I just hit the ground and start running.
So there’s other ways to buy property. And to find these buyers, I have a book called 39 No Fluff Marketing Boot camp, it shows you 39 ways to find sellers for free or paid, whatever your budget is and everything between. And if you want to learn about how to do owner financing, how to negotiate on the owner financing, how to close owner financing, how to do the sells, how to give offers. If you want to learn about master leases, Airbnb, you want to learn about fix and flips, land lording at big course guys. I have what’s called; I have just created it and just finished it just having been 48 hours. It’s called The Mother Course. And I’ve already sold a lot out of it, it’s very long, its 171 chapters, and it talks about the mother course. Just like our planet, it has everything in there. It has everything from whole selling which we don’t have to own a property, just put it on their contract, you don’t need any credit, you don’t need any money, and you just sell your positioning; all the way down to fix and flips, how they give offers, how to find the repairs, how to meet the seller. Then we talked about sales, negotiations, land lording and it’s so big guys. It has cold calling, door knocking, technology, how to set up your voice messages, how to set up your website, Facebook marketing, retarget marketing, it is so long and basically it’s two books, you have the part 1 and part 2. I recommend you guys start to part 1, and then take action and then come back to the part 2 whenever you come to a situation where you need that specific skill. Because it’s not just one type of book where you have to get one for owner financing, buy a book for land lording, buy a book for whole selling, it’s everything, it’s the mother course. And with that you can go and find seller that are willing to sell you their home, without you taking your house that you built all this time, equity into it, and then giving it back to the bankers for a ridiculous interest rate or whatever you’re going to jeopardize in it. When I get that house paid off, sometimes it’s a good option but I don’t think I would use it much in my business, only very little.
Now, the alternative ways like master leases, owner financing, subject two’s, wraps or what I’m going to go for. And that is why I don’t deal with the banks because there are sellers out there that are motivated. And if you market to them, you’re going to find them, and when you find them, if you know how to talk to them, some of you guys are new and you don’t know how to talk to a seller. You don’t know what to ask them or you don’t know if they’re motivated. Then what you need is to download my ninja seller phone script and that guides you through all that stuff from all the way to what to ask the seller, all the way down to how to do the numbers to give the offer, all the way down to decide to, let you know what type of offer to give the seller because the question is like four or five pages. It has an hour, almost an hour video training plus the PDF file; it’s not your average selling film script guys. I just call it the seller phone script, it’s multi-dimensional, I use it, my students use it, and they pay me twenty five thousand. So highly recommend getting that, guys.
Now, if you use these techniques, you cannot get home equity loans, but if you want to get home equity loans, they’re great because you don’t have to sell your goose. And if you just keep your goose, you already know the goose; you know all the dimensions of the goose, you know how long days on the market are, when you try to rent it. Or if you live in the property you already maybe got maintenance to it, or your kids grew up in it. So you don’t have to sell your home to get some cash to do some investment. So home equity loans are good, but if you’re new and you want to get in the business, I wouldn’t recommend getting a home equity loan because I recommend for learning how to advertise to find motivated sellers. It will take more energy and more effort on your part and if you got to learn more skills, but you don’t have to get into debts in the sense of putting your social security up in line in a sense of getting, non-recourse loan, if you don’t know what that is, get to my website blogs, my real estate dojo and type in non-recourse loan, I have a video about that.
So it’s very crucial that if you’re new, I don’t think you should go borrow money from the hard money lending, I don’t think you should borrow money on your credit card, I don’t think you should borrow money on your own home stead, because your odd to success is very little. If you don’t believe me, if you never played the guitar, go pick up the guitar and tell me how good you are, if you never played golf before, go pick a golf course and see how good you are. So if you’re going to pick up a new skill, like investing which is complex, pass playing the guitar and you never done it, it doesn’t make any sense to go get in to debt assuming you’re going to succeed. Or there are some people that do it, absolutely. This is America guys, but the probability, the odds against you is so much higher.
To advertise the motivated sellers, marketing is two ways; free or paid. Free requires sweat equity, your time. Paid requires you know, money and you just feed the marketing machine. So guys, if you want to do owner financing and you want to learn how to find motivated sellers that are willing to do one of financing, and instead of getting the home equity financing, instead of getting to debt, you need to do one thing. Get on my website, my real estate dojo, search on the box and click on the online store and look for the mother course. It’s the only course you need for real estate.
The mission of this course was for me to help you, get one to three deals in 59 days. So it gets you one to 3 deals, like what does it deal, from you learning this information, you taking action, you finding your seller, you talking to, you put on the contract, you take a title of a company and, you buy yourself your fix and flip or get buy and hold, if not. If you’re a whole seller then you get back in to the game and market it to find cash buyer and then you take it and get your assignment fee. All that in 59 days, if you’re an action taker, and if you’re not an action taker, you’re a couch potato then I’m sorry, it’s not going to work for you. So don’t even bother. But if you want to take action, the mother course has everything under the moon, the stars, all lined up for you for very, very small price of 325 bucks at this current time, I’m having a special on it guys. Retailing 1,500 bucks, I can sell it for $5,000. And you can go back to my other products that I sold like my VA exponential; people are saying that that’s worth $5,000. They were saying they bought many different books, REI courses and I rocked them, and rocked those little guys out because I put my heart and my love into it guys. I want to change your life. This book is going to help you get one to three deals in 59 days. The guys say they never had sales experience or nervous, never done any of these marketing and you’re probably going to be only one, I don’t want to jinx it, you could do three or more. Anything is possible in America, but the people that have sales experience or hungrier and more driven, they’re going to be on the three side. I usually, with my students that are able to do that in 30 days or less. One to three deals have many people doing one week, two weeks, 30 days. So I’ve given double my formula because I’m not there to hold your hand and make sure you’re doing it right. So that’s why I said – hey 59 days. What I want for this course is to help you, without you spending $25,000 and show you exactly what I teach my students, so you get your first paycheck, second paycheck, third paycheck depending on your mindset and your hunger level, and your time you have allocated to it. But if you take action, this is the only course you’re going to need to get your first paycheck. I talked about owner financing, I talked about note creation, I talked about door-knocking, I talked about cold calling, negotiation, I mean it just goes on and on and on and on guys. Motivation, mindset, your belief, your dreams, you know, it is just one and only guys. And it is a game changer, this book is great for somebody that hasn’t done a deal yet, all right. If you went to courses and you spend money and nothing happened. I’m very sorry, that happened to me too. But if you take this book and you take action, I give you a lot of free bonuses. What do I give you in there, besides 171 chapters, the size, the hundred hours plus, which is almost two weeks plus of video training. It is more than a hundred hours, understating it. I give you my 39 marketing boot camp that has tons of marketing assets in there like text messaging ads, like online ads, print ads, like email follow-ups series ads, tons of other stuff guys I have 39 ways of proven, street tested I use to find sellers for free, almost for free. And in the mother book I have tons of marketing things you can do. From text messaging all the way down to mail
The mother course is not going to last forever guys at 1,500 bucks retail, since it’s a pre-launch flash sale 325, you’re not going to regret it if you take action, this is the only thing you’re going to need guys. Don’t take no for an answer and instead of spending your next month bill in drinking or going to the bar or paying cable bills, etc. light bill, why don’t you put that investment, commitment to yourself to get deal and change your life if it’s for yourself, if it’s for your family, whatever it is. And I am over delivering to help you get what you want to go because I’m not a money chaser, I’m a life changer. And if you just get in to my website, look for reviews, and you can tell. I have three businesses rental properties. I didn’t even have to do this. I was making good money, I had hundred thousand, my dream car, I had my dream bike, and you know 20 grand, when most people’s car is not even that much. I was living the life guys and I let it all go because I want to be exactly where some of you guys are, which is starting from nothing and making something. The past six months, seven months, I’ve been homeless you know, I’ve haven’t have water, I showered every three or four days. I mean, you know, I’m starting just like you guys. And you can do it in America. And that’s the key, and since I’m not doing it anymore, sense of not having all of my businesses and keeping everything private, I could give it to you guys all out, okay. So I don’t have to feel like you guys are my competition anymore in this sense okay, so I’m letting it all out, I want to change your life, download my mother book, take action, send me a picture of your check guys, because that’s the whole goal. To get as many people with checks next to them, saying the mother course changed their life guys. Don’t take no for an answer, hustle and bustle. See you later gang.